I do know that the Federal Senate has approved, and I, Ramez Tebet, President, in the terms of art. 48, inciso XXVIII, of the Internal Rules, promulgated the following

RESOLUTION NO. 55, OF 2002

Authorizes the Federative Republic of Brazil to hire external credit operation with the Inter-American Development Bank (BID), worth up to US$ 5,000,000.00 (five million dollars) Americans), aimed at the resources to be financed, partially, the Modernization Support Program of the Court of Union Accounts.

THE FEDERAL SENATE RESOLVES:

Art. 1º It is the Federative Republic of Brazil authorized, pursuant to resolution No. 96, of 1989, reinstated by Resolution No. 17, of 1992, both of the Federal Senate, to hire external credit operation with the Inter-American Development Bank (BID), worth up to US$ 5,000,000.00 (five million U.S. dollars), aimed at the resources to be financed, partially, the Modernization Support Program of the Court of Union Accounts.

Art. 2º The financial conditions of the external credit operation referred to in art. 1º are as follows:

I-debtor: Federative Republic of Brazil;

II-creditor: Inter-American Development Bank (BID);

III-value: up to US$ 5,000,000.00 (five million U.S. dollars);

IV-purpose: to finance, partially, the Programme of Support for Modernization of the Court of Union Accounts;

V-term of disbursement: up to 3 (three) years;

VI-amortization: semestral plots, consecutive, of values as much as possible equals, calculated on the basis of the amount of principal disbursed principal disbursement, winning the first 42 (forty-two) months after the Contract signing date and the last up to the September 10, 2022;

VII-interest: required semester, calculated on the basis of the cost of capturing the Inter-American Bank of Development (BID), corresponding to the rate for Qualified Unimonetary Loans ascertained during the 6 (six) months prior to the respective maturities, plus a reasonable margin expressed in terms of the annual percentage, and shall be paid in the days 10 of the months of March and September, as of March 10, 2003;

VIII- commission of credit: required semester on the same interest payment dates and calculated based on the rate of 0.75% a.a. (seventy-five hundred percent a year) on the undisbursed balance of the loan, going into effect 60 (sixty) days after the signing of the Contract;

IX-resources for general inspection and supervision: US$ 50,000.00 (fifty thousand U.S. dollars), disbursed in quarterly installments, as much as possible equal.

Art. 3º The permission granted by this Resolution is to be exercised within the maximum period of 540 (five hundred and forty) days counted from the date of publication of this Resolution.

Art. 4º The parties involved in the credit operation that it treats the art. 1, should, preliminarily to the contractual formations, meet the following requirements:

I-fulfillment, by the Court of Auditors of the Union of the following conditionalities:

a) creation of the Program Coordinator Unit (UCP) and designation of sufficient personnel for their functioning;

b) creation of an adequate financial and accounting system for the registration of the transactions effected with the resources of the Program;

II-recognition, by the Inter-American Development Bank (BID), of the compliance, by the Court of Auditors of the Union, of the conditionalities referred to in the inciso I.

Art. 5º This Resolution comes into effect on the date of its publication.

Federal Senate, on November 14, 2002

SENATOR RAMEZ TEBET

President of the Federal Senate